Litecoin Price Forecast – LTC/USD Supported over 200 EMA, Bullish Correction in Play!

Posted Thursday, May 20, 2021 by
Arslan Butt • 2 min read

LTC/USD closed at $185.837 after placing a high of $294.022 and a low of $185.837. LTC/USD saw a steep decline on Wednesday and reached its lowest since 29th March amid the recent ban on cryptocurrencies in China. Litecoin was down by 39% on Wednesday, and this was the largest percentage decline in Litecoin ever. The recent slump in LTC/USD was caused by the latest ban on cryptocurrency transactions by financial institutions and banks in China. The nation has banned cryptocurrency trading since 2019 due to money laundering issues. However, people were still trading cryptocurrencies online, which raised concerns in Beijing that urged the government to take action against it.

On Tuesday, the Chinese finance watchdogs, including the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, issued a warning on social media. The warning said that consumers would have no protection if they were to incur any losses from cryptocurrency investment transactions as they were highly speculative and risky.

BITCOIN, which is the largest cryptocurrency in the market by market cap, saw a steep decline following this news, and the whole cryptocurrency market followed the trend, including Litecoin. LTC/USD saw its most significant daily percentage loss on Wednesday and dropped below the $186 level. Meanwhile, an online trading platform Saxo Markets has launched a new cryptocurrency offering for investors as interest in crypto assets continue to grow. The investors will able to trade Bitcoin, Ethereum, and Litecoin against the euro, yen, and U.S. dollar from a single margin account.On the other hand, the U.S. dollar was also strong across the board that added further pressure on LTC/USD. The U.S. Dollar Index (DXY) that measures the greenback’s value against the basket of six major currencies, rose to 90.29 and weighed on Litecoin prices.

LTC/USD Daily Technical Levels

Support Resistance
149.776 257.961
113.714 330.084
041.591 366.146
Pivot Point: 221.899

LTC/USD is trading sharply bearish, falling to 285 level. On the higher side, the pair may find resistance at the 236 level, and a bullish crossover of 236 can lead the Litecoin price towards the 285 level that marks a 61.8% Fibonacci correction level. The MACD is forming smaller histograms, suggesting odds of a bullish trend reversal. Let’s keep an eye on the 236 level today. Good luck!